EOW Odisha arrests builder on allegations of Rs.15 crore fraud

The Economic Offences Wing, Bhubaneswar has arrested accused Santosh Kumar Rath on Thursday for a fraud of as much as Rs.15 crores

Bhubaneswar: The Economic Offences Wing, Bhubaneswar has arrested accused Santosh Kumar Rath, Additional Director of M/s Mishra Creations Pvt. Ltd. a Real Estate company on Thursday.

According to report, the said arrest has been made from Bhubaneswar in EOW PS Case No.17 dated 01.05.2023u/s 406/420/467/468/471/120-B IPC r.w. Sec. 6 of OPID Act, 2011. The arrested accused is going to be produced before the Designated Court under OPID Act, Cuttack.

The above referred case has been registered on the basis of the written allegation of Swadesh Ray Chaudhury of Rasulgarh, Bhubaneswar regarding the cheating meted out to him and as well as other investors in the name of giving flats in the project ‘UTOPIA’ at Chandaka of M/s Mishra Creations Pvt. Ltd.

He has booked a flat in the above said project during the year 2016 and advanced an amount of Rs.16 lakhs to the accused MD Jyoti Ranjan Mishra. He has incurred a bank loan to give the advance and has also entered into a tripartite agreement with the builder and the bank.

The flat was to be handed over within 30 months, but till date no flat was given to him by the real estate company nor he was refunded the invested amount. The arrested accused Santosh Kumar Rath, Additional Director of M/s Mishra Creations Pvt. Ltd. was looking after the marketing of UTOPIA Project situated at Chandaka.

Later on, he was appointed as the Additional Director of the company. He along with MD Jyoti Ranjan Mishra has collected more than Rs.15 Crores from more than 130 investors from 2016 onwards to provide them with flats in the project ‘UTOPIA’ at Anlapatna, Chandaka.

It was promised by the real estate company to hand over the flats within 30 months of booking. The company was constructing 10 No. of blocks (A-J) in the above project at Chandaka. The investors were made to enter into a tripartite agreement for financing with the banks. After taking almost 95% of the total cost of the flats, the real estate company did not hand over any single flat to the investors even after the elapse of eight years and was giving false assurance to deliver the
flat from time to time under different pretexts.

It was also found that, the arrested accused Santosh Kumar Rath along with MD Jyoti Ranjan Mishra has done multiple transactions in respect of a good number of flats booked earlier in the name of different investors.

Earlier, accused Jyoti Ranjan Mishra, MD of M/s Mishra Creations Pvt. Ltd. was arrested in this case and still in judicial custody. Investigation of the case still underway.

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